McDonald’s tests cheaper menu options at 1,900 US locations

McDonald’s has launched an eight-week test of affordable menu options at 1,900 U.S. locations and is also testing mix-and-match bundles, CEO Christopher Kempczinski said during a Wednesday call with Wall Street analysts, according to CBS News. The company aims to launch new offerings nationally in 2027.

The tests come after McDonald’s U.S. comparable sales slipped 0.2% in the quarter ended Sept. 30, following a 2.4% increase in the same quarter a year earlier. U.S. restaurant visits fell 4.6% year over year, according to Placer.ai figures reported by CBS News and Global News.

Why McDonald’s is testing new deals

Global News reported that the U.S. sales decline was the first after five quarters of growth and missed analysts’ expectation of a 0.1% fall. Visits had recently improved with the return of McDonald’s Monopoly promotion and Halloween Boo Buckets, but remained below the year-earlier level.

Executives pointed to increased marketing of entry-level meal deals and extra-value meals, including a US$2 breakfast sandwich and free fries with a US$1 minimum purchase. Global News reported that McDonald’s said U.S. sales were improving with promotions and marketing. Kempczinski said he was encouraged by baseline traffic trends in September and October.

Franchisee participation affects value deals

McDonald’s said in August that about a third of franchisees did not participate in its under-US$3 menu, hurting its execution, according to Global News. The company and U.S. franchisees were discussing pricing. An eToro market analyst told Global News that the durability of meal deals depends on whether McDonald’s or franchisees bear their cost.

The U.S. decline came alongside stronger company-wide figures: global comparable sales rose 1.5%, in line with expectations, while adjusted earnings reached US$3.57 a share, up from US$3.22 a year earlier and above the US$3.38 analysts expected, Global News reported.